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A Section 139(9) defective return notice appears when the Income Tax Department identifies missing details, incorrect information, or inconsistencies in an ITR. Errors such as mismatched income data, wrong bank details, or selecting an incorrect return form can trigger this notice. Once marked defective, the return must be corrected within the given time—usually 15 days—to avoid being treated as invalid. An invalid return carries consequences such as interest, penalties, and

Unreported capital gains often trigger income tax notices when the Income Tax Department detects mismatches between financial records and the details submitted in a tax return. These notices typically arise from missed mutual fund redemptions, equity sales, property transactions, or incorrect reporting in AIS or Form 26AS. When this mismatch appears, taxpayers are asked to clarify the source of gains, furnish missing documents, or file a corrected return. Understanding why th

Cash withdrawals and deposits in current accounts have become a major point of verification for the Income Tax Department, especially when the transaction pattern does not align with the income profile disclosed in the return. High-value deposits, repeated cash movements, and mismatches with GST or business turnover often lead to scrutiny under sections such as 142(1) , 143(2) , or 69A. Banks also report these transactions through AIS and SFT, allowing the department to track

AIS mismatch income tax notices arise when the income reported in the Annual Information Statement differs from what appears in an income tax return. These discrepancies usually involve bank interest, dividends, TDS entries, securities transactions, or other third-party data submitted to the Income Tax Department. Automated notices highlight mismatched figures that may lead to incorrect tax calculation, refund delays, or additional tax demands. Quick verification and accurate

Section 143(1) intimation is an automated communication generated after an income tax return is processed, highlighting adjustments such as arithmetic corrections, incorrect claims, or mismatches with AIS or Form 26AS. Many taxpayers confuse this preliminary computation sheet with an actual income tax notice, even though the two serve different purposes. Intimations perform automated checks, while income tax notices require deeper scrutiny, additional information, or reassess

Multiple Form 16s often create mismatches in salary reporting, TDS credits, and employer information, causing income tax notices for discrepancies under automated ITR processing. When employment changes occur within a financial year, each employer issues a separate Form 16, and the income must be consolidated accurately to align with AIS and Form 26AS. Errors arise when salary components are double-counted or when TDS details are missed. Platforms such as TaxBuddy streamlin

High-value transaction income tax notices are issued when financial activity reported by banks, mutual funds, registrars, or credit card companies does not match the information declared in an income tax return. The Income Tax Department reviews data received through the Statement of Financial Transactions (SFT) and Automated Information Systems to flag cash deposits, property deals, investments, and large payments that cross specific thresholds. When inconsistencies arise, n

TDS mismatch in Form 26AS occurs when the tax deducted and reported by deductors does not match the tax credit claimed in the Income Tax Return. Such gaps often trigger automated income tax notices, delay refunds, or lead to adjustments under Section 143(1). The issue usually originates from incorrect PAN entry, wrong TDS amounts, delayed TDS return filing , challan errors, or mismatched income reporting. A mismatch signals that the department’s database and the taxpayer’s c

Introduction Tax planning and tax management are strategies for minimizing taxes and optimizing financial outcomes. Tax planning is the act of assessing your finances and making informed decisions that reduce your tax bill . Tax management is a more complete method that focuses on properly managing all tax matters. For a taxpayer, it is crucial to understand the difference between tax planning and tax management and the broader ramifications of each of them. Table of Contents

Income tax notices triggered by AIS, TIS, SFT, or TDS mismatches often require a quick decision: whether to file a belated return or move directly to an updated return. The right choice depends on timelines, the type of discrepancy, and whether the department already holds concrete data that indicates under-reporting. The distinction matters because each option carries different costs, compliances, and legal outcomes. Platforms like TaxBuddy simplify this decision by analys